SCHD vs BND: Head-to-Head Comparison
SCHD vs BND: Schwab U.S. Dividend Equity ETF has an expense ratio of 0.06% while Vanguard Total Bond Market ETF charges 0.03%. SCHD holds 103 securities vs BND's 11,286. 5-year returns: 12.10% vs -0.50%.
Last updated: April 2026
Dividend vs Bonds
Quick Verdict
BND edges out SCHD with a stronger Beginner Suitability Score (10 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | SCHD | BND |
|---|---|---|
| Expense Ratio | 0.06% | 0.03% |
| AUM | $62.0B | $116.0B |
| Dividend Yield | 3.40% | 4.30% |
| Holdings | 103 | 11,286 |
| 1-Year Return | 12.90% | 3.20% |
| 5-Year Return (Ann.) | 12.10% | -0.50% |
| 10-Year Return (Ann.) | 11.50% | 1.40% |
| Beta | 0.82 | 0.03 |
| P/E Ratio | 16.8 | N/A |
SCHD 5-year annualized return is 12.10% compared to BND's -0.50%. Over 10 years, SCHD returned 11.50% vs BND's 1.40%.
View data table
| Period | SCHD Return | BND Return |
|---|---|---|
| YTD | 1.80% | 0.50% |
| 1 Year | 12.90% | 3.20% |
| 3 Year | 7.20% | -1.80% |
| 5 Year | 12.10% | -0.50% |
| 10 Year | 11.50% | 1.40% |
Key Differences Between SCHD and BND
SCHD (Schwab U.S. Dividend Equity ETF) is a u.s. large-cap dividend fund managed by Charles Schwab. SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.
BND (Vanguard Total Bond Market ETF) is a u.s. intermediate-term bond fund managed by Vanguard. BND provides exposure to the entire U.S. investment-grade bond market, including government, corporate, and mortgage-backed bonds. Bonds generally provide stability and income to a portfolio, acting as a cushion when stocks decline. Beginners often add BND to their portfolio to reduce overall volatility and provide steady income, with the typical rule of thumb being to hold your age in bonds as a percentage of your portfolio.
The most notable differences are in fees (0.06% vs 0.03%), number of holdings (103 vs 11,286), and 5-year returns (12.10% vs -0.50%).
SCHD vs BND multi-factor comparison: SCHD has a 0.06% expense ratio, 12.10% 5-year return, 103 holdings, 0.82 beta, and 3.40% yield. BND has 0.03% expense ratio, -0.50% 5-year return, 11,286 holdings, 0.03 beta, and 4.30% yield.
View data table
| Metric | SCHD | BND |
|---|---|---|
| Expense Ratio | 0.06% | 0.03% |
| 5-Year Return | 12.10% | -0.50% |
| Holdings | 103 | 11,286 |
| Beta | 0.82 | 0.03 |
| Dividend Yield | 3.40% | 4.30% |
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Holdings Overlap Analysis
0%
Holdings Overlap
SCHD and BND share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
SCHD and BND share 0% of their top holdings (low overlap). SCHD has 103 total holdings and BND has 11,286.
View data table
| Metric | SCHD | BND |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 103 | 11,286 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SCHD
Fee cost: $515
BND
Fee cost: $258
Over 20 years, the fee difference amounts to $257 on a $10,000 investment. BND saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, SCHD (0.06% fee) grows to $46,094 while BND (0.03% fee) grows to $46,351. The fee difference costs $257.
View data table
| Year | SCHD Value | BND Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,653 | $14,673 |
| 10 | $21,470 | $21,529 |
| 15 | $31,458 | $31,590 |
| 20 | $46,094 | $46,351 |
Which One Should a Beginner Choose?
Choose SCHD if: You want income-focused investors who want a reliable and growing dividend stream, conservative investors who prefer lower volatility with quality companies, retirees or pre-retirees building a dividend income portfolio. It's managed by Charles Schwab with an expense ratio of 0.06%.
Choose BND if: You want conservative investors who want portfolio stability and predictable income, investors approaching or in retirement who need to reduce portfolio volatility, anyone building a balanced stock-and-bond portfolio. It's managed by Vanguard with an expense ratio of 0.03%.
Can You Own Both SCHD and BND?
Absolutely! With only 0% overlap, SCHD and BND complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy SCHD or BND?▾
BND edges out SCHD with a stronger Beginner Suitability Score (10 vs 9). It offers lower fees for new investors. However, both are solid options. SCHD is best for investors who want income-focused investors who want a reliable and growing dividend stream, while BND is better suited for conservative investors who want portfolio stability and predictable income.
What is the difference between SCHD and BND?▾
SCHD (Schwab U.S. Dividend Equity ETF) tracks u.s. large-cap dividend investments with 103 holdings and a 0.06% expense ratio. BND (Vanguard Total Bond Market ETF) focuses on u.s. intermediate-term bond with 11,286 holdings at 0.03%. Their top holdings overlap by 0%.
Can I own both SCHD and BND?▾
Yes! With only 0% holdings overlap, SCHD and BND complement each other well. Owning both gives you broader diversification.